A Reuters poll of forecasts by economists projected China’s economy grew 7.5 percent in the April-June quarter from a year earlier, slowing from 7.7 percent in January-March.

However, trade figures last week showing an unexpected fall in exports for the first time in 17 months raised market concerns GDP could be weaker than expected.

New Premier Li Keqiang has been prominent in pushing for economic reform over fast-line growth, suggesting the government is in no rush to offer fresh stimulus to revive an economy in a protracted slowdown. Before Monday’s figures, growth had already slowed in eight of the last nine quarters.[Source]

Financial markets may have underestimated the leadership’s tolerance for slower growth as it pushes to wean the economy off a reliance on exports and investment with reforms and deregulation to encourage more consumption, analysts say.

“The focus is still on reforms,” said Xu Hongcai, senior economist at the China Centre for International Economic Exchanges (CCIEE), a well-connected think-tank in Beijing.

“The chances of a cut in interest rates or banks’ reserve ratio look slim,” Xu said. “Previously, when the economy was not good, local officials held out their hands for money from the central government. But now they have to embrace reforms as no money will be given.[Source]